Corporate Governance for Emerging Markets

Abstract

Corporate governance has become an essential tool for improving corporate performance and advancing the development of market-oriented democracies. Good governance practices maintain the integrity of business transactions and in so doing strengthen the rule of law and democratic governance. A powerful antidote to corruption, corporate governance clarifies private rights and public interests, preventing abuses of both. The paper discusses the key concepts in corporate governance, a framework for applying corporate governance principles to emerging markets situations, and outlines the four-step strategy. The paper discusses include: need and growing significance of corporate governance, benefits of corporate governance, basic principles and internal and external aspects of firm governance. A four-step strategy is discussed for effective corporate governance.